— Charter Amendments Regarding the Budget Approval and Appropriation Process of the City of San DiegoCharter Amendment —

City of San Diego

Proposition F Charter Amendment - Majority Approval Required

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Election Results

Passing

218,384 votes yes (81.13%)

50,807 votes no (18.87%)

Shall the City Charter be amended to update the City's financial operations, including amendments regarding the certification of funds, the authorization and payment of claims, the management of funds, the disposition of proceeds of the sale of City-owned real property and the establishment of reserves?

This proposition would amend the San Diego Charter to update and clarify certain financial operations and practices of the City and to require the City to establish General Fund reserves.

— San Diego County Registrar of Voters

Impartial analysis / Proposal

The San Diego Charter sets forth, in several sections, requirements for how the City manages City funds. These sections include requirements for the certification of the availability of funds prior to the approval and execution of contracts, the use of proceeds from the sale of City-owned real property, the approval process for payment of claims against the City, the requirement that the City maintain certain cash reserves, and the way the City accounts for city-owned real property.

If approved, this proposition would amend the Charter to update and clarify these processes and requirements, as follows:

The proposition would revise and clarify the language setting forth the requirement that the availability of funds be certified prior to the approval and execution of City contracts. The amendments would not change substantive legal requirements.

The proposition would eliminate the City’s Capital Outlay Fund, which was previously used to fund City capital projects but no longer receiving sufficient tax revenues. The requirement that the sale proceeds of City-owned real property be used for capital projects would remain. The use of these proceeds would be expanded to allow the proceeds to be used for financing costs related to capital projects.

The proposition would clarify the process for approval of the payment of claims against the City and would allow for payments to be accepted by the City in any form authorized under state law. These amendments would not change substantive legal requirements.

The proposition would clarify provisions requiring the City to have sufficient General Fund cash on hand to pay obligations coming due in any fiscal year before major property tax revenues are received. This amendment removes contradictory language in the Charter but does not change substantive legal requirements.

The proposition would require the City to establish General Fund Stability and Emergency Reserves. It would provide that the Emergency Reserve may only be accessed by a two-thirds vote of the City Council. The Council is also required to establish policies for the use of the Stability Reserve.

The proposition would eliminate the Charter requirement that the City appraise and depreciate City-owned real property. Similar requirements already apply to the City through government accounting and auditing standards.

The City Council’s Charter Review Committee approved sending this measure to the ballot, and the City Council voted to place the measure on the ballot. If approved, the Charter amendments would become effective after they are chaptered by the California Secretary of State.

— City Attorney

Financial effect

This measure would update, repeal and consolidate outdated sections of the City Charter dealing with various financial operations of the City to more accurately describe current operations and authorizations.

There is no fiscal impact associated with these Charter amendments.

— San Diego County Registrar of Voters

Arguments FOR

The Charter, the Constitution for the City of San Diego, was first written 85 years ago, and has not undergone a thorough review or update since then. Some Charter articles and many sections are simply unnecessary, outdated, confusing, or worse, contain misinformation. The Charter needs to be updated to reflect how the City operates in the 21st Century and to be more open, transparent, and easy for citizens to read.

The Charter Review Committee worked with the City's Chief Financial Officer, the Independent Budget Analyst, the City Attorney and the Mayor's office to develop these proposed Charter changes.